Who is required to file ITR?
As per section 139(1) of the Income Tax Act, 1961, any individual whose total income in the financial year exceeds income tax exemption limit (Rs. 2.5 lakh for FY 19) is liable to file the income tax return. Apart from that any private or public company based out of India or doing business in India, firms, Hindu Undivided Family (HUFs), Association of Persons (AOP), Body of Individual (BOI) etc. are also liable to declare net profits/losses of the year and pay their tax liability by filing ITR.
The Income Tax Department of India has made it compulsory for individuals to file income tax returns. Individuals that need to file income tax returns are as follows:
- A person with an age lesser than 60 years has an annual income greater than Rs.2.5 lakh.
- A person with an age between 60 years and 80 years and has an annual income of Rs. 3 lakh or more.
- A person who is above the age of 80 years and has an annual income of more than Rs. 10 lakh.
- A company or an organisation is bound to file for an income tax return no matter if the company is in loss or profit.
- If there is a loss which you want to carry forward under the head of income.
- If a resident Indian has an asset or any financial interest in an entity situated outside the geographic territory of the country.
- If an individual applies for a loan or a visa, a proof of filing tax returns might be required.
- If an individual receives income from property that is held under any kind of trust for charitable purposes or any research association, educational centre or any medical centre, trade union or any non-profit university.
If a non-resident Indian has his/her income sources from India, then he/she is also liable to pay the taxes and also to file Income Tax Returns.
What are income tax slabs for FY 2018-19?
Income tax slabs for individuals and HUF (less than 60 years old) for FY 2018-19
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income Upto Rs 2,50,000 | Nil |
| Income between Rs. 2,50,001 – Rs. 500,000 | 5% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh
15% of tax where total income exceeds Rs. 1 crore
Health & Education cess: 4% of tax plus surcharge
Income Tax Slab Rate for Senior Citizens (Age 60 years or more but less than 80 years)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income Upto Rs 3,00,000 | Nil |
| Income between Rs. 3,00,001 – Rs. 500,000 | 5% of Income exceeding Rs. 3,00,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh
15% of tax where total income exceeds Rs. 1 crore
Health & Education cess: 4% of tax plus surcharge
Partnership Firms
Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%.
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
Health & Education cess: 4% of tax plus surcharge
Local Authorities
Local Authorities are to be taxed at the rate of 30%.
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
Health & Education cess: 4% of tax plus surcharge
Domestic Companies
Domestic Companies are to be taxed at the rate of 30%. However, tax rate will be 25% if turnover or gross receipt of the company does not exceed Rs. 250 crores.
Plus:
Surcharge: 7% of tax where total income exceeds Rs. 1 Crore
12% of tax where total income exceeds Rs. 10 Crore
Health & Education cess: 4% of tax plus surcharge
Income Tax Slab Rate of Co-operative Societies
| Income Tax Slab | Income Tax Slab Rate |
|---|---|
| Upto Rs 10,000 | 10% of Income |
| Rs. 10,000 to Rs. 20,000 | 20% of Income exceeding Rs. 10,000 |
| Over Rs.20,000 | 30% of Income exceeding Rs. 20,000 |
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
Health & Education cess: 4% of tax plus surcharge
Is it mandatory to file ITR online?
Taxpayers belonging to any of the following class are mandatorily required to file their income tax return only through e-filing mode:
- Individuals or HUFs having a total income of more than Rs. 5 lakh or having a tax refund claim is mandated to file ITR electronically. However, super senior citizens ( Individuals with 80 or more years of age) filing ITR 1 or 4 have the option to file the ITR manually or electronically.
- Every company is required to file ITR electronically under digital signature.
- A firm or individual or HUF whose books of account are to be audited under section 44AB are mandated to e-file the ITR.
- A person who is required to file ITR-5 or who is claiming tax relief under section 90, 90A or 91 of the Income Tax Act, 1961 are required to file tax return electronically.
- A resident taxpayer having assets located outside India is required to submit tax return electronically
Important Income Tax Return Filing Due Dates for FY 2018-19 (AY 2019-20)
The income tax due dates for the categories of taxpayers are specified below:
| Particulars AY: 2019-20 | Due Date |
|---|---|
| Individuals, HUF, BOI, AOP (Income Tax Return by Assesse whose Books of Account are not required) | 31st July 2019 |
| Due date of filing the Income Tax Return by businesses whose Books of Account are not required to be audited | 31st July 2019 |
| Filing ITR Due Date for (Assessee who are required to furnish report under sec 92E) | 30th November 2019 |
| Due date of filing the Income Tax Return by businesses whose Books of Account require an audit | 30th September 2019 |
Note: Central Board of Direct Taxes (CBDT): All the Taxpayers who could not file their Income Tax return the Penalty Levied For late Filing is as follows
| Particulars | Penalty |
|---|---|
| Penalty if taxable income is less than Rs.5 lakhs | Rs.1,000 |
| Due date of filing the Income Tax Return by businesses whose Books of Account are not required to be audited | 31st July 2019 |
| If ITR filled after Due date but before 31st Dec | Rs.5,000 |
| If ITR filled after 31st Dec but before 31st Mar | Rs.10,000 |
Income Tax Forms
| Return Type | Applicability | |
|---|---|---|
| ITR-1 | ITR-1 form can be used by Individuals who have less than Rs.50 Lakhs of annual income earned by way of salary or pension and have one house property only. | File-Return |
| ITR-2 | ITR-2 form must be filed by individuals who are NRIs, Directors of Companies, shareholders of private companies or having capital gains income, income from foreign sources, two or more house property, income of more than Rs.50 lakhs | File-Return |
| ITR-3 | ITR-3 form must be filed by individuals who are professionals or persons who are operating a proprietorship business in India. | File-Return |
| ITR-4 | ITR-4 form can be filed by taxpayers enrolled under the presumptive taxation scheme. To be enrolled for the scheme, the taxpayer must have less than Rs.2 crores of business income or less than Rs.50 lakhs of professional income. | File-Return |
| ITR-5 | ITR-5 form must be filed by partnership firms, LLPs, associations and body of individuals to report their income and computation of tax. | File-Return |
| ITR-6 | ITR-6 form must be filed by companies registered in India. | File-Return |
| ITR-7 | ITR-7 form must be filed by entities claiming exemption as charitable/religions trust, political parties, scientific research institutions and colleges or universities. | File Return |
Documents Required for ITR Filing
- PAN card
- Aadhar Card
- Valid Mobile Number & Mail ID
- Bank statement
- Interest certificates from banks or post offices
- Proof of tax-saving investments
- Form 16 (for salaried individuals)
- TDS certificate
- Form 16A/16B/16C
List of documents needs to preserved for claiming deductions:
A. List of Investments u/s 80C-
- Life Insurance Premium receipts
- Deferred Annuity receipts
- Provident Fund contrition receipts
- Receipt of Term Deposit for 5 years or more with scheduled bank
- Receipt of Public Provident Fund contribution
- Receipt of Senior citizen saving scheme deposit
- Receipt of Contribution made to superannuation fund
- Receipt of Tuition fees
- Receipt of Investment in Debentures / Shares of Companies as approved by CBDT
- Receipt of Time Deposit for 5 year with Post Office
- Receipt of Subscription towards Mutual Fund units
- Receipt of Principal Repayment of housing Loan/Stamp duty,registration fees & Brokerage for purchase of such house property
- Others relevant receipts
